and underlying military capacity to kill people had not been resolved. so we kept working through 1995. so the bosnians and croats when they started fighting after the peace agreement only controlled 30% of the land of bosnia even though together, they were 50% of the population. by the time we started peace talks they had gone from 30% to 50%. so we got a big break on the ground so by the time our parties met in day in and the principles of peace had been agreed to the bosnians and croats had what they would have to have under any negotiable

peace settlement. that was important. then in 1995 everything went straight back to what dick holbrooke called the problem from hell. exemplified by the slaughter, the second major showing of the sarajevo market after which nato launched a 30 one hundred missile mission campaign, airstrikes and missile strikes, and was clark and the whole team went about trying to to get some agreement on basic principles to open peace talks. ..

>> that was strobe talbott's job, keep the russians happy. easy little job. the result was the's agreement. the peace agreement that said there would be one unified country with an undie vieded sir yea slow -- sarajevo as capital. trade and immigration, and each

division -- the serbian republic and the bosnian and croatian republic -- would have their own police forces and, basically, run their domestic lives. then we had to sell it, including a peacekeeping force of 60,000, two-thirds of which would be supplied by 25 other countries, one-third by the united states. you heard them talk about that. as i remember, only about 60% of the people were opposed to us participating in that. i say that to make this point. the american people, particularly when they think not all is well at home, have their political leaders to act for them, but they know we have global responsibilities. often times when a proposed course of action is unpopular, it's not exactly like the voters

are telling you not to do it, it's basically like a giant blinking yellow light. they're saying, for goodness sakes, be careful, tell us what our objectives are, tell us when it's going to be over, and tell us what it's going to cost. and you better be right. in other words, if you win for america, we to have give you. if you don't, you own it. it ain't like we told you -- we didn't tell you so. that's basically what these polls mean. you cannot make foreign policy decisions by polls. you just can't do it. 80% of the people parenthetically were against my helping mexico when we gave them a loan, again in 1995. everything happened that year. and we had just lost the congress. people taught i was nuts -- thought i was nuts. and so i asked, this is what you have to think about with bosnia and with all these other issues.

so we don't make the loan to mexico and they go broke, and they hate us and so does the whole rest of latin america, and the next year we have another million illegal immigrants and billions dollars more of drugs flowing across the border, ask chaos reigns everywhere. and people ask me, why did you let this happen? and i say because on the day i had to make the decision there was a old that said 80% of you -- there was a poll that said 80% of you were against it. so the president in international affairs gets hired not only to look down the road, but around the corner. you get hired to win for the country. you have to start with a goal in mind and work back and realize that the citizens understand that there's no way they can know as much about something as you do. they've got their own lives to live and their own problems. but when they tell you not to do something, what they're really telling you is with careful, please. tell us as much as you can about what you're going to do. don't do a lick more than you

have to, don't spend a dollar more than you have to, and you better be right. but it had nothing to do with the discharge of your responsibilities. i'm not sure that there were majority against our restoring -- [inaudible] there were a majority against bosnia, a majority against the russian aid package, there was a majority against our going into kosovo. we didn't have a majority doing, starting any of this. you just have to look down the street and around the corner and listen to the brinking yellow light. blinking yellow light and treat your citizens with respect. tell them honestly what you're doing and why. so all this stuff is happening. finally, we got the peace agreement between the shutdowns. then in december we had a formal peace signing in paris. my one and only chance to have a

meal with slobodan milosevic. and i sat down across the table with him. madeleine and sandy and i have talked about this a lot. milosevic was intelligent, articulate, cordial and the colteddest man i ever -- coldest man i ever met in my life. i have never looked into darker eyes in my life. he was also rather paranoid. he knew that i had been a very close friend of itself acura bean, and he'd been dead only a month, and he said you know he was killed because he was brayed by a member of the intelligence service. and by the way, that's why kennedy was killed too, you guys just did a better job of covering it up. everybody was always out to get somebody in milosevic's mind. and that justified any kind of thing he did to kill anybody he killed. the price of victory and the way

we pursued it was high. be the estimates of those killed ranged anywhere from 1-300,000, everybody knows there was more than two million refugees who were driven out of their homes. the peace has endured, but unity remains elusive. just today they're having a meeting about whether boss think ya and herzegovina can be taken into the european union, and the answer is probably not now because they haven't been able to form the kind of national institutions necessary to exercise full membership. as the serbs still try to join some greater serbia. but the peace has endured. also, to go back to what i said at the beginning, had the peace endure wile maintaining our

relationship with russia. we expanded nato. we took in new members. we had more than 40 affiliated countries in a partnership for peace. we had a special agreement with russia and with ukraine to cooperate with them. we got ukraine and kazahkstan and belarus to take their nuclear weapons out of their countries and put it back into russia, and then under the nun-lugar bill we helped to control that. and during all these years, by the way, i spent a lot of your tax money to keep about half of the 40,000 russians involved in nuclear, chemical and biological work employed so they wouldn't go to work for a long -- [inaudible] all that had to be considered in the context of bosnia. and finally, we made an

unequivocal statement by saving the largest community of muslims in continental europe that we were not an anti-islamic country, that america would take serious risks to keep innocent muslims from being killed. and that we would work with and support any islamic population that renounced terror and embraced reconciliation and cooperation. we were trying to do all this at once. thousand, you can readily -- now, you can readily see how important intelligence is. we had to know how much change yeltsin could absorb. we had to know how reliable the efforts to move the nuclear weapons out of these other countries back into russia was. be -- all this while dealing with everything we had to know in boss my ya. bosnia. and we had to do the right

things in bosnia and do it in the right way. i can't say enough about the intelligence apparatus that was set up. to give us timely, quicker, briefer, more accurate reports of what was going on in this bosnia. and we had there in their balkan task force the cia, the defense intelligence agency, the nsa, the joint chiefs of staff regularly working together. sandy chaired a tenty's committee -- deputy's committee that kept all the agencies working together. we were committed to sharing information, not hoarding it, to

try to reconcile the apparent inconsistencies and then to make good decisions. you know, i love all these shows, homeland and all that stuff. i love that stuff. [laughter] but the real world involves all these cia folks out there killing themselves to figure out what is really going on and how to get that back to the oil makers. to the policymakers. and what leon says is right, you have to be an active, not passive consumer of intelligence. otherwise, someone just assumes that your bandwidth has been choked in 1994 and '95, and you wind up like we were, not even having a meeting about rwanda. because you're so obsessed with all this other stuff. so the obligation of the policymakers is to be aggressive

in this saying what we need. i also agree with the comments that were made in the panel about the need to have someone representing these intelligence forces in the room when you're making decisions so you can get more information. i suppose this is just this my experience, the only time that the cia went beyond that was when we were at y river and before when the director, then-director of cia, george tenet, was an active partner with the poe sad and the -- mossad and the palestinian intelligent services in promoting peace if the middle east. but it's hard to quarrel with the results. 998 is the only year where not one israeli was killed by a terrorist incident. even though there was a prime

minister too early election where the leadership of the country changed hands. so we're living in a world where it's easy to blur the lines. but i think it's important to recognize that what they did in bosnia was of lasting and enduring benefit. and the cooperative mechanism that was established to share information and to do it in a responsive, straightforward way is a good role model that ought to be followed in the future. it's not one of those lessons, to quote one of the things in the book, that ought to have to be relearned. i like former secretary of state jim baker very much, but when he said in response to the trouble in bosnia we don't have a dog in that fight, i think he was wrong. we did have a dog in the bosnian fight, and we still do.

what was the end of the cold war going to mean? the rise of chaos? or the rise of democracy, prosperity and cooperation? if you want it to be the latter instead of the former, no matter how thorny bosnia had become, no matter how much blood had been shed, no matter how much determination there was for destruction, we had to get caught trying to do the right thing. we could not have said we're going to end one century and start another with the first legacy in europe having end doored two world wars, a depression and a holocaust in between, the first thing we're going to say is we couldn't do a darn thing to stop ethnic cleansing. secondly, as i've said, i think it's important because it revitalized nato. it proved that there was a cold

war mission for nato. thirdly, it was important because it proved we could manage a difference of opinion with russia and bring them in both into the peace talks at dayton and into the peacekeeping postconflict which happened not only in bosnia, but thanks to bosnia, later in kosovo. and finally, it helped us to send what i thought was a constructive message to the muslim world that by our own moral standards was the right one because we were keeping innocent civilians from being slaughtered. we did have a dog in the boss my yang fight. bosnian fight. and all of these people you just heard from, the others i mentioned and some i have not, peter galbraith, chuck redman, lots of other people, they made sure that our dog won the fight.

the peace has held. the future is up to the bosnians. i think that the government documents which are being released today will show that. they'll show that the roots of of the so-called ethnic cleansing were not as deep as people said. it's not true that the boss with any yangs had always hated each other. sarajevo had seen bosnians, crow watts and serbs live together in relative peace for five centuries. what you had was a bunch of power-hungry, land-hungry politicians who thought that they could spark the deep well of insecurity that exists in all of us by making them fear the other. it's the same thing that happened between the tutsis and

hutus in rwanda, the same thing we have happening today. you'll see that if you read these documents that are being released. this was not some longstanding problem, this was a naked, cynical, cold-blooded and bloody power play. you will also see the level of dedication and cooperation that all these people and those i've mentioned and others brought to their work. it will prove all over again that creative cooperation works best to solve complex problems. a few years ago a journalist wrote a book called "the wisdom of crowds," and in this a sentence here's what the book concludes: if -- just look around this room -- suppose i

could instantaneously do a measurement and find the person with the highest iq. and we take all the rest of us, and we go in another room, and the person with the highest iq goes in his or her own room. if you field a series of problems in, one after the other, and ask for a response, over time the crowd will make better decisions than the genius. even einstein, who had the biggest measured brain we've ever seenment -- seen. so the fact that they were smart to begin with and that they all worked hard made a big difference. that's the second thing that we learned. the third thing is that the cooperation on intelligence made all the difference, because if you get bad facts and bad interpretations, you will make good decisions for the set of facts and interpretations you have, but it won't work in the real world.

so again, i think you will see by the release of these cia documents that they did a heck of a good job. and i feel very strongly that we should do more of this. i believe it's true that when i was president, i uncovered more documents than anybody else had, and i know i authorized the release of our own classified documents more quickly than ever before. when -- in addition to this cooperative mechanism we have, while the bosnian conflict was going on in 1994, i issued an executive order that declassified 34 million pages -- 44 million pages of documents. some of them had been kept secret going back to world war i. in a war where power is diffuse, you have to trust people with knowledge and be prepared to win

arguments based on the knowledge available. instead of trying to hoard it. in 1995 i issued an executive order which released images acquired by intelligence satellites for, that had scientific or environmental significance. this was a big deal to al gore. he had been trying to do this since 1990. and it had never been done before. there had never been any release of intelligence photography. and the world didn't come to an end. in fact, 90% of you didn't know it had ever happened. [laughter] and the other 10% didn't know it was secret in the first place. [laughter] we have to be very careful not to create an edifice of importance that blocks us from the empowerment of ordinary citizens in a democracy.

we needed a bunch of this stuff to be secret while we were making the decisions, but after it was over, it's a good thing to let scholars and unvarnished, unbiased examiners look at these things. in 1995 we charged the cia and other agencies to institute declassification programs. before that only 5% of all the classified documents kept by the government had to be released by a time certain. after that more than 50%, it was assumed, add to be released within 25 years. thanks to the cia, we're way beating that 25-year deadline today. so i think all this is really important. and just from 1995 through 2000, six years, we declassified 800 million pages of documents compared to 188 million in the

previous 15 years including two of those were my years when we declassified about 25% of that. be -- i believe this is an important part of maintaining the public trust. people have sense enough to know that you have to collect information that you don't wallet to broadcast -- want to broadcast, but they know they're paying for it too, and they have also sense enough to know that as soon as the danger is past, we ought to give them the information so people can figure out whether we did the right thing with it or not. and what we could do better in the future. this is a big deal that the cia has done to have this event today. this is the earliest any of in this information, in this kind of information has ever been released. you can say, oh, well, you guys like the because it worked out okay.

madeleine's story, she could have been even blunter than she was about some of the things she said and did that made her a hero to the rest of us. [laughter] but believe me, what you will find when the time comes, all the documents harp to get re-- that were to get released about rwanda, there aren't any to speak of. because we missed it. and nobody had to uncover any documents, because i just admitted it. but that's another thing i'll go back to the point leon made. why it's important to be a positive, not a passive consumer of intelligence. the cia and every other intelligence agency knew that bosnia was eating the world alive and threatened the whole future of europe and huge

numbers of innocent people were dying over a long period of time. and bosnia 800,000 people died in 90 days. it happened in a hurry. and we were preoccupied elsewhere, and we didn't do anything. i wish i didn't have to say that. but isn't that better than covering it up or trying to come up with some kind of a cock and bull explanation? and it does not in any way minimize the signal achievement of what was accomplished in bosnia. because we had good intelligence, good people in all the relevant positions of authority and responsibility, and we did this together. and we ghei -- gave europe a chance to strengthen and broaden the european union. to build a continent that was united, democratic and at peace for the first time since

nation-states rose on the european continent. to end the slaughter of a muslim minority that was called ethnic cleansing. while there was no biological distinction between them, muslims, croats and the serbs. it's just that it was in sarajevo that the ottoman empire reached its northernmost point, the holy roman empire that was catholic reached its easternmost point, and the orthodox russian empire that was russian orthodox reached its southernmost point. people arranged themselves accordingly and later killed themselves as if there were ethnic differences. it was all about politics and power. nearly always when you find somebody strong killing somebody weak, the stated reason they do it is a lie. and one of the great gifts that

secretary albright brought to the deliberations that we had here and in kosovo and mt. expansion of nato -- in the expansion of nato and in support of a strong united europe was a family history and a personal history of having seen some of those dramatic events unfold. so that's the story. like all of history, there are many questions still pending, but the peace has held. because a long time ago with a lot of other things going on, good people were given good information and made good decisions. thank you very much. [applause]

[inaudible conversations] [inaudible conversations]

[inaudible conversations] >> coming up on c-span2, a discussion on the future of money, investing and banking. and later, aous panel examines -- a house panel examines president obama's use of executive power in making changes to the health care law. live coverage at 10 eastern. >> this morning a discussion on pell grants and college affordability. we'll l aerofrom student -- aerofrom student financial aid officials. live coverage begins at 10 eastern on c-span3.

>> i didn't give the idea for the for dummy's series. i had an idea to do a beginning book about computers, about dos specifically, and i kind of inspired myself to do that just dealing with people in a magazine editing job i had, being on the radio at that time and being out in the public and talking to people about computers. it was obvious that people wanted to learn more, but the material we had available at the time just wasn't doing the job. ..

and, unfortunately, or fortunately, 5000 copies came off the press. originally it was going to be 7500 but they stopped it at 5000 they figured okay, we will shout this out in the marketplace and it will go away. at the time that all the bookstores even wanted to have it. waldenbooks said no, we don't want to insult our reader. we don't want that. but even with just 5000 copies, this is before the internet, this is before we had bookstores, real bookstores people into. they came in and it was gone. in a week it was sold out because people wanted to. is like they saw and they said that for me. i'm a dummy, i bought that book. >> today that more than 250 my books in print and over 1800 for dummies titles out there.

find out more this weekend as booktv and american history tv look at the history and illiterate life saturday at noon on c-span2. >> you are watching c-span2 with politics and public affairs. weekdays future live coverage of the u.s. senate. on weeknightweeknight s watch key public policy fans, key public policy fence, into the weekend the latest nonfiction authors and books on booktv. you can see past programs and are scheduled at our website, and you can join in on the conversation on social media sites. >> now, a look at the future of money, investing in banking. a group of entrepreneurs from the financial industry spoke at the annual chicago ideas week in october. this is 90 minutes. >> ladies and gentlemen, please welcome the founder of the online financial network tastytrade, tom sol 16 off.

[applause] >> and -- tom sosnoff. i get a look at a picture of myself. they say you are coming on after gog on the script we got. i looked at it and said what's that? voice of god. so now i know, brad is got. this is a huge discovery. this is cool. how are you? thank you all for coming out today. is going to be an incredible show we have five amazing speakers, entrepreneurs, just interesting people. i think you will enjoy. it's all about adventure and just giving the last couple of people a few seconds to, in your. my name is tom sosnoff. i have been in the chicago money world for a pretty long time, almost 33 years. started at chicago board options exchange, build sink or swim and i would building a financial media company called tastytrade.

i'm excited to be here. a little different than a user do. i've been on the vote for 13 years doing talks about financial engagement opportunities empowerment. now i'm talking about the benjamin. critical. never talked about money before. trying to keep a light. i know everybody wants to have some fun today. thank you again so much for coming out. it's an amazing lineup and some people i know come some people i work with, some people i just met today for the first time. it's kind of an incredible assortment, so i hope you enjoyed. i thought i would start off with a fun little story. when brad or whoever called me up and said which is like to speak at chicago ideas week, i was bitching at them because i'd never done before, this was the first time asked and i said what's the topic? paygo, all about the benjamin.

and so i'm like, that sounds interesting. not exactly sure what i will talk about the army figured out. they said you've got a grand total of five minutes. okay, cool, because might average speech is about an hour and 45 minutes. some figuring how will i squeeze that in the five minutes. for me that's a tough one quick i'll tell you a little story. just to keep it fun and light and then we'll get into the whole discussion. a couple weeks ago, he would have or three weeks ago i'm getting on a flight. we do eight hours of live programming a day to five days of speaking of the internet every single day along with live shows every other weekend. i hop on a plane to go out to arizona. i have a show in scottsdale and there's about 1000 people there and i got a run out on friday night. i've been working since about three or four in the morning that friday. i get on a plane heading out to arizona. it's about probably 6:00 in the afternoon. i get on the plane and there's a

guy sitting in my seat. so i go, that's my seat. this guy looks at me and he goes, yeah, but i was hoping, i was hoping we could maybe negotiate. have you ever walked on a plane estimate asks if you want to negotiate? i had the aisle seat and he of the window seat. he gets up and looks at me he says, i thought maybe you know, i thought maybe i could do something for you. now, i kind of a pure homeless -- [laughter] not really but i appear. i'm one of the few people in chicago that i can pull this off. i think he's thinking i got the three up -- free upgrade and he can buy the aisle seat from me. because i learned lately been shopping for a long time. he takes out his wallet and he looks at me and he goes, it's all about the benjamin. this is right after i got this gig to speak you. he said it's all about the benjamin. i'm like, this can't be

happening. this is not going to be the topic of a conversation when the get up in front of a couple hundred people. he looks at me and the first thing he does is he takes -- his wallet is full of money but it's not all american money. multiple countries. he pulls out a $20 bill. i'm not sure that should i've been trading since 1980 because the meeting that i'm kind of used to negotiations and certain arrangement. the guys pulls out a 20 and i said -- the whole line is behind me. i'm fairly wide. it's hard to sneak by me. so i look at this. april the 20 and i said no. peoples of the 50 and i'm like no. he said what's going to take? of benjamin. i'm thinking this is too coincidentally, too weird. i go listen, dude, you don't have enough money. he looks at me just i don't have enough money? you don't have enough money. he said point how much it will take to get you to move.

aye this. like a want his whole wall. because he keeps pulling it up. i said this much. he moves over the seat. the funny thing about this is as we are doing that i sit down and this is one of these flights that has directv. we look at the directv, the monitor and it's got cnbc playing. i'm building a network that competes with the financial networks. that's my biggest not me. i'm next to a drunk guy who just who over from korea and he's been on a plane for 24 hours and drinking at least a couple tricks an hour and i'm watching cnbc and he looks at me and he goes, what do you do? aye, the funniest thing is, we created a show for nbc -- cbc about finance, option action. we gave it to them. that show was on. it's sponsored by sink or swim which is a company i started. so i said i work for them but i don't work for them anymore. i go to work for them. he looks and he goes oh, that's

cool. my bag since sink or swim. he's watching tv. he goes out. i'm watching him he's trying to talk to me but i'm ignoring them. he's like i can't believe you didn't take the money. i can't believe you'd didn't take the benjamin. he keeps saying benjamin, benjamin. he's getting antsy. i have to take the aisle because i have to go to the bathroom. now you've got me in the window. so the plane starts to tax and all of a sudden he is googling sink or swim and a picture of me comes up. so he showed me his ipad because you haven't taken off it. he says you prick, you slow putt me. i know why you didn't take the money for me. he has a picture of me sitting next and. now he weighs down the flight attendant. he weighs them down says has to go to the bathroom. as we are taxing paygo no, you cannot get a. get back at in your seat. he keeps threatening to get up to go to the bathroom, and a

flight attendant, all three of them, they pushed the button code red. they looked at me and they said, they said, keep your friend in line. [laughter] or were going to tell the pilot to go back to the gate and get rid of you two guys. i ago i just met this guy like 20 seconds ago. this guy goes, he's smart. tom, we worked together at sink or swim. we been friends for x number of years last night and then they solicit, we don't know what you guys are up to but no more words out of the. and walked back to the seat and he looks at me and goes, you should have taken the benjamin. [laughter] anyway, we have the -- [applause] >> by the way, that flight got diverted to albuquerque. i was on a flight with him for eight hours. when we landed in scottsdale because, listen, you're a good dude, you've been fun all night. i'll try to to your hotel. i said you got 40 drinks and

less 40 hours. i'll walk to my hotel. i'm not getting in the car with you. we have an amazing show and just enjoy and we'll be back and forth all day. i think this'll be great. thank you. [applause] coming up next, we have -- adam, are you there? i guess the other. adam erlebacher. come up here. beautiful but adam is from a company called simple.com and they're changing the world of online banking and do-it-yourself banking. adam, welcome. [applause] >> i work at a company called simple. i'm really excited to be here. i'm going to talk to all of it about what we're doing at simple, and hopefully give you

guys some food for thought. how me folks off my with simple? wow. so for those of you who don't know much about simple, let me give you a look at of background. so simple replaces your bank with a smarter way to save and spend. when you sign up for simple you get this card in the mail. and this card is attached to an entry -- interesting technical account that is fdi insured by banking partner. what's different about simple is when you swipe your card we automatically categorize all of your transactions in real-time so you don't have to do anything to budget. we also have some tools that allow you to set aside money for things like your cell phone bill or your rent or your groceries. we show you this number we call safe to spend which tells you how much money you can safely spend today without hurting yourself tomorrow.

we spent a lot of time thinking about customer experience. we try to do things different and try to make every interaction with simple delightful. so when you sign up for simple you get this in the mail. it's, norman when you get a new card from a financial institution it comes in at number 10 envelope, you opened up andrew card is attached to that white piece of paper with a bit of gummy glue. that's the best thing because you get to take it out and you can play with it. but the rest of the experience is horrific. we wanted to do things differently and you get a card carrying in the mail and it actually steps into and it becomes a minimal wallet where the card and then attaches on the other side. we operate in the banking and payment industry which is really, really complicated.

it's actually quite a mess. at in order for us to provide the customer express that we want to provide, we have to whip out a lot of the technology that was there before. all of this legacy stuff that we have to rip out. we take out the bunch of rubber bands to get at the data we need to build the customer express we want to offer. and the reason why we do this is because every single year, there are three things that pop the new year's resolutions list. one people want to save more. they want to spend less and they want to pay off debt. big challenge, specifically in this country, is that banks fundamentally make money by keeping customers confused. i'm not trying to be overly controversial about -- maybe a little bit.

but when the banks incentives are to make money off overdrafts, they make more than 50% from peace in charge, then their interests are not necessary aligned with yours. and so when it comes time to get have clean interfaces that allow you to really understand how much money you have, it's the banks incentives to target that overdraft fee, there's a mismatch of incentives. even if you go outside of your bank to try and find a budgeting tool, it's not the best experience either. because there are a few reasons for this. the first is that they rely on third party data sources. they don't actually have access to the underlying data.

they get from aggregators that only provide prefilled data for every transaction you make. normally, they will get the merchant name, the date of the transaction and the amount. and with that they then have to figure out, how do i categorize this transaction? was this a restaurant? a pharmacy transaction? all the merchant names typically have lots and lots of sort of junk that gets sent out over the wire and have to figure out whether it was actually like a coffeeshop next-door or it was a target, and there's usually lots of junk and hashmarks and all the merchant name descriptions. so it's not really their fault but that's the data they did and that's how they presented to you and that means they had to go back all for your transactions and recategorize them. if you ever used the tools, you're familiar with it. the other thing is they are not real-time. when you're out there swiping or making payments you might have like a rent payment that's coming up the next day, these

tools are not really good at showing how much money you actually have. if you're going into a store and trying to figure out to have money to spend on this item, you don't really know because it's not real-time. sort of lastly, they don't solve the underlying problem of bank incentives. they are running on top of that bank experience. so how did things get so screwed up? if you look at the payment networks, there are lots and lots and lots of different layers. at the core that there's some really old payment technologies that have been working very, very well and they don't break but they're not exactly the most innovative thing. so when you took everything down to the actual metal, money only moves in the country in three ways. it's not like paypal or all these other innovative services. there are three of them, two of

them are operated by the federal reserve to the first is something called fed wire which is a real-time settlement service but it's typically used for a large dollar amount and it's growth of ice in $100 to you and use in the 120, that full amount gets processed. and there are a few thousand banks that are members of fed wire so it's a bank to bank network. then there's the national summit service, a national settlement service is also run by the federal reserve. it's a net settlement service so if i go you 100 you will me wonder 20, and only for the $20 gets settled. this is backspace o other way fr essentially a bit of time before they process all the transactions. and so it's not real-time and it's also for a larger dollar settlement. typically credit card transactions, atms, all that stuff is settled by nsf.

and then lastly is chipped but if you grew up during the 80s, it's the most stylish and exciting payments network. it's actually the clearinghouse interbank payment service. this one is actually a private network, not the federal reserve. and it's run -- its own and operated by the bank. the problem with all of these services is that while they work really, really well, they weren't architected to support millions and millions of transactions that are going in between individuals. for the most part they are not real-time. so most of the banks that have built technology on top of these networks, because the underlying networks are real-time, they were not think about real-time by the. real-time wasn't much of a big deal until mobile devices came around where you could pull it

out of your pocket and check your balance and see a much money you have and transact. but now that that is something that we all want to do, we are really handicapped by the old technology that underlies the systems. and so if you think about your bank experience today, and even sort of earlier a few years ago, he would walk into the branch and convenience was being able to talk to the teller to get your questions answered. it wasn't so much of a problem back then because it was a telleteller mediated experiencet you have to tell you to talk to you and the teller could help you and they could sort of intricate what you needed by going deep into the belly of the core of the system that the bank offered. that became more and more difficult as banks actually merged. there was a huge wave of deregulation and a lot of banks merged together, now you have just a few really large banks,

about 7000 smaller banks right now. but because of that merger wave, a lot of these technologies had to get integrated. it wasn't a really difficult thing to have two screens in front of the teller showing one customer from this bank and another customer from another bank because they were able to mediate that. but when the internet came around they had to really integrate the systems and sort of expose this crusty old legacy data directly to the customer. so the customer is just looking at all the nastiness with the product of all these mergers and lots of old technologies. and so they basically build a boat but now the boat that the banks build was required to fly. that's really, really hard. this is a quote that evan williams said at the xo xo conference in portland a few weeks ago. he said the internet is a giant machine designed to get people what they want.

it really resonated with me because when you are thinking about banking, the online banking world is really not designed with that in mind right now. people want to save more, pay less and pay off their debts, they don't have the tools they need today. this is just something that gets sent to you every single month. this is complete insanity to me. maybe you guys are way more financially responsible for me but i've never balance my checkbook. you get this every month. but this just drove me insane. the first thing it says is note. make sure your checkbook register is update with the register. there's an extra space here between editions and not. [laughter] it's like so careless and they can't even get this column of

your dollars to like fine. and then they give you okay, step two, it's like filling out an irs form, right? why does it have to be this hard? like we have computers that are good at adding and subtracting and that kind of thing. when we were thinking at simple, like how to actually improve this experience, we want to start with the customer. what does the customer what? what is the ideal experience, are what are their pinpoints so we can come up with experience that we know will satisfy their needs? once you kind of figure that out then the question is like, what is the data that we need so that we can build that experience for the customer? what is the required architecture so we can get that data out? and like i was saying in the opening, like, we had to rip out

a whole bunch of stuff. when you rip out a bunch of stuff you get to like the underlying things that are exciting and like to give you the data that you need something to build something really cool, right? this is a screenshot of our web experience. we built this with data that we're getting directly from our processors. so we get what's called the standard feed which gives us about 30 different fields versus those three fields that some of the folks get. so with that we get the merchant name, timestamp, the merchant classification code which shows where there's a restaurant or whatnot. that's problematic so we have to clean that. there's a lot of learning. we geocode all the transaction by adding more data onto the data are getting it across the wire. ultimately, this is just about that experience so we want to make sure that customers can

engage with their finances and get immediate answers to questions without having to pull out like an excel spreadsheet or spending hours and hours a day with quicken. so here we have a search feature and get out the works, iq can search for your transactions and it returns useful information. we store all of customers transaction data because storage is what she. everything goes in the cloud and banks in the '80s never thought of doing this because it was so expensive to store stuff. i'm going to search for something. i'll search for -- i search for dinner. so dinners. how do we know it's dinner? because we're getting all this great data we know the timestamp, we know whether it was a restaurant or fast food or whatnot. so if it was between the hours of 4:30 and two am, it was probably dinner. you can search and will tell you exactly how much money you spent on dinner.

and if you want to see it on a chart, we'll show it to you and you can see what your spending patterns look like overtime and maybe you're spending too much at mcdonald's and -- whatever you want to do to change her behavior. we are giving you the data that can change your decision-making. you can make those trade-offs and understand what those trade-offs look like. then you can get fancier. you can see how much did i spend on dinner this year? we understand the natural language search and we will show you what you're spending looks like over the past year. money drop is another feature that we recently announced. it's not yet available, but it allows you to essentially transfer money to a friend. so it's a lot like cash. ali to educate your thumb, you transfer the money from your face to your friends face and to drop money on their face. [laughter]

it is like just the most fun you'll ever have paying someone back. so that's really what i wanted to share with you today about simple. i would just say if you looking at an industry that is really, really collocated, that is where the opportunity lies. health care, finance, banking, i mean, these are really complex industries and they are just screaming out for help. if i could leave you with one thing is, seek out the complexity and simple quiet. thank you. [applause] >> i'm actually not very good at listening to other people. i'm used to talking so this is kind of weird. next up is alex mittal. no, alex. let's go. this will be fun. from the founders club. how are you?

>> i want to hear more plain stories. >> we met this morning for the first time and again on her show. we had a little chat. it was good and tell everybody, what do you do? >> i worked with the founders club. we are the first online venture capital firm, and i saw some common themes with the last speaker in the sense that we were taking on an industry that really hasn't changed in decades. do we have any founded in the audience who have raised capital before? was it an enjoyable process? so, it's like just incredible, but the entire financial underpinnings of growth of the innovation economy is decades old, even though it's yielding such innovation. we realize that and said what would've venture investing look like it was invented in 2013 if it was approached from a user experience point of view? you know, what the people really want and how do we make there be

less friction in this experience? >> i've started a couple of companies over 30 years. we didn't know what raising capital was all about. light, we have no idea that they were supposed to be a process. is the only the last couple of years i learned there's a process you're supposed to follow. i thought you just go out and keep bugging people until they give you as many millions of dollars as you need. i didn't know there was a process. what you have done in a certain way, you kind of stepped in front -- you changed a little bit. you have commoditized it for small companies because we probably get on average a couple of hundred e-mails a year that say, hey, i've got a great idea but how do i get started? or what do i do once i get the concept of? >> that touches on what of the key problems we saw that exist today, which is for the best challenges, you are out raising capital. what are you not doing? you're not talking to your users or customers. you are not building products or

service. fundraising becomes a huge process, a huge effort. it is a process and we really wanted to kind of demystify that, make it more efficient. to break it down and make it real for you to give you a sense of what it's like to fund raise for those who don't know for a small company, while you are just barely keeping your head above water as it is, barely able to cover your costs. you are also going to meet with groups, for example, angel groups where you're sitting in a room, asked a bunch of question. they say thank you very much. you go back to your thing. he did about 20 of those meetings. you go back and forth for a couple of weeks, sometimes a couple of months over e-mails. maybe you're demoted to an associate and then you have a side conversation. finally, you get all these checks together and if you're lucky you're able to wrap it up and keep going.

clearly, that's not how founders would design the experience. and i had insight into this. basically i started a couple of companies and in the process raised $30 million of venture capital and angel capital from own company. really opened my eyes to what, the good and the bad that was after. >> does it take away this morning. because i'm an investor, i'm an angel investor. a lot of people come to me and say will you invest in the company? some kind of a deck and they say tom, take a look, this is a great idea. i know i want to invest in this person but i really like the idea but i always in the same which is, i'll invest ask if you get to a certain number. it's an old trade thing like if you can get half of the order filled i'll take the next 10%. >> they hate that spent of course but i don't know how to

do a deal on my own. i think what you do is you make that process. you almost to a lot of that adding work for us spend what i've spoken to so far is from the founder point of view but as an investor, i went -- became an angel investor and his initial issue was just knowin doing whao invest in an understanding how did you due diligence on these opportunities can be quite complicated. and what's quite shocking is in this country today there are 10 million what are called accredited investors, 10 million. these are people who have high net worth and they're legally allowed to invest in startups. another kind of ridiculous circumstance of the country today is if you're not high net worth, if you're not a millionaire you can't legally invest in startups. but that's for another topic. so the 10 million people, of the 10 million people, only 250,000 of them, something like 5%, invest in startups today.

the reasons are partly because of what you're talking about. what we are trying to do is increase the level of transparency, lower the bar for being able to review opportunities, understand and to your point, being able to have a group vetting process that's not rely just on your own ability button that pulls in experts from the start of industries from the startup world from the investing world spent i think as invest one of the things about what you do is like for me if i want to invest a lot of early stage our mid-stage companies i have to go through a private equity firm which means i've disliked the private equity firm and i to trust their selection denver. what i've always wanted to do is make a decision. i think this needs to come back to the do-it-yourself. and then from making my own decision at that point go forward and take a decision. i can do that through your site to light what's the minimum, maximum? >> first of all addressing what you're saying because i think

would be interesting to the audience, the venture capital industry as a whole is quite a humbling fact, but on average the vc funds don't return capital to their investors. >> are you allowed to say that? >> i'm happy to share the facts. because of that, clearly like yours, they are being paid. they are selecting that these supposedly commands the capital. people ar are asking if i painfl to manage my capital and they are just not making a return on my capital, may be i should deploy it myself. sort of in the way that are investors who do. certain strategies, certain mutual funds all in a certain strategy or even pick stocks in the public market. we do make that possible. to your question about checks us, that's a very dramatic difference. one of the reason why there are so few angel investors or investors who invest in startups as individuals today is because

the minimum to invest are really, really high. it's like $25,000, $50,000, $100,000 at the seed stage, the earliest stage. even if you're making a couple hundred grand a year, you are doing very well, putting 50k in one company in one year is probably not a sound like logical financial diversified portfolio strategy. so there really wasn't the way to do that so we were like how can we sliced and diced that so that there's an entity, in this case the founders club, that can be the investors deploying a large amount of capital but where individuals can provide sort of that capitalize individual that make sense for them. so below 2500, $5000 at a time. >> i think you told me this morning that sent you guys launched your product you have invested in 50 or 60 copies? >> fifty-one. >> that's only since last

summer. talk to us about some of the old you've seen at early stages that make this whole exercise really exciting for you. >> sure. i mean, the reason we created this in the first place is we truly believe that there's so much potential out there in the world for people to get involved in a partnership and to start a sink to because of what i described isn't as much capital out there to support those efforts as they could be. number i gave earlier, only 5% come if you extrapolate out how much capital that could be available to entrepreneur's to try new ideas, to test new markets, it would be over half a trillion dollars just in the united states a year. the anti-venture capital at angel industry today employs about $50 billion. we are talking about a pool of capital that 10 times bigger potentially available that allows for new ideas. for us, like we just start to

see that. so the kinds of ideas that are being -- we don't pick a favorite. they are all wonderful but some of the more interesting that describe, a company called -- that makes the revolutionizing gesture motion and into. you may know the microsoft connect, i'm sure you off my with touchscreens and mice and keyboards. they have created a device that is abrasive. you wear it and it reads your muscle signals to it knows beforehand move which are going to do with your fingers. so they're doing things like creating keyless keyboard. input devices were used now to make the music louder, things like that. found a company that makes an electronic skateboard. goes uphill at 20 miles an hour. and from those kinds of ideas, as boring but as impactful as

making i counted more understandable for small and medium businesses. we founded a company called -- that automates the process, plugs into all of your banking system from your checking account, savings account, et cetera. rather than having to know how to do accounting and work with quickbooks to give you your updated p&l live and so forth and balance sheets. everything in between. >> we have this theory that in order to to change and transition and industry you have to be one transparent, and to come yet to make your products available to a lot more people. it sounds to me, i have this idea that american investors, consumers, investors, even credit investors have this incredible side towards mediocrity. we are happy with average because we didn't lose. it supports everything you said about the returns. the question is, is what you are doing going to change that entire approach to investing in startups? whereas it's not necessarily

hey, i'm just doing this, or taking a free shot. a real piece of asset management spent i truly think so. on the check size, just to explain that, when used to be deploying 50k, that truly is a gamble. whereas what we are saying is a, still take and choose, but diversified. spread across just like professional capital stock portfolios. you should probably do the same thing. it's probably not responsible just a gamble if you're doing that if you're literally gambling just for fun, but once you start to enable diversification, you are able to mitigate risk. and clearly we are not proposing that people save for the life savings into these asset categories. high risk high reward type of category. because of that it's more for portfolio diversification. >> define high risk. >> you could lose all of your money. >> we know that but define a

realistic -- with a realistic assumption. 10%, 20%? not return lives but the typical chance -- >> every year there are at least or thousand started in the united states seeking capital and there's no way that all 4000 like nessus america that capital at least at that point in time. as an investor you have to be very careful of where you're putting your money. the aggregate trends say something is to as one in of just everybody out there living to still be there 10 years later. some people say the number is less and some people say more but it's something like that. is a fraction. it's not like over half of our businesses to stick around. >> is this the new fund? so when i got to chicago in like 1980 the new frontier, all the markets exploding because then all this derivative marketplace in chicago and that was the new frontier. that's where all the cowboys went. is this the new frontier?

does -- making it more mechanical than it's been let's say last four or five years of? >> in this dialogue, i should take a step back and point out that my first advice to a news is don't raise money if you don't have to. and also like stay scrappy as long as you can't answer get erotic market fit before you go out there. as we are talking unlike -- >> my advice is exactly the opposite which is take as much when as you get if anyone is willing to give it to you. because when you need money you can get it. when you need money you can't get it but when you don't need money, everybody wants to give you money. [laughter] >> you should've taken that guys money spent always take the money. spent i was talking about -- >> the way i think it's the new frontier is it's not like hey, it's the wild west, let's fund everything.

it's bringing the concept of startups investing more mainstream. creating more of a dialogue around there are people here, trying to change the system, disrupting different industry. you're bringing 10 million people in the united states alone who have never been able to get to invest. how many of those remain to be seen? is raising the profile around this entire group of companies. >> the individual investor doesn't have an opportunity anymore to really invest in companies when their first starting out like twitter, facebook. when we were growing up, we could invest in apple spent an ipo used to mean, it's sort of superhigh promise, high growth, neglect half billion dollars market. a facebook, would have been unheard of 10 years ago. the macroeconomic changes that have occurred are treading this

pressure from regular investors used to be able to participate in that innovation and value creation on the public market, and they are seeking -- there are to many mechanisms to produce but in what they used to be able to. >> alex built an incredible little company and its an awesome site, founders club.com. you should check it out. thank you, alex applause not. >> -- [applause] >> coming up next we have two amazing women that i have had the pleasure of working side-by-side with for the last, on and off for the last decade. first up is kristi ross, who was the cfo of sink or swim. they asked me to recommend some people in financing technology, and they didn't go much further than our own backyard. chrissy was the cfo of sink or swim. she's now the ceo of dell.com. she will introduce to the next generation of why nancy. hey, christy.

[applause] >> thank you. so, thank you. thank you coming out. as tom said, i am the ceo of dell.com. my background, i came from sink or swim. -- dough.com. i've been in around the trading industry for about 20 years. i would say that these last two years i've been in financial media and i've learned a lot. that's not my background. but now what we've done is we've pulled together all of our expense from sink or swim, all of our experience from tastytrade, and we have rolled it into a company called dough. right now we believe that the industry is ripe for innovation.

we have -- let me just get my slides here. one of the things that we truly believe is that banks and brokerage firms and wealth managers have an opportunity to tap into the younger generation. we think there needs to be a new approach, but with individual -- with a new visual and the new design. and we need to go to the younger generation with how they use technology today. so they are highly mobile, and they have -- they really -- they want information to come to them. i want to first introduce to you just a sneak preview of dough. are going to be launching dough

in a few weeks, and really a handful of weeks, and it combines trading and combines an engagement platform for the younger generation. i'm just going to show a quick video to give you a sneak preview. ♪ ♪ ♪ >> so one of things that we've done is going back to the thing adam said is really simple fine trying to roll this into one

platform that simplifies -- having problems with the clicker, sorry. one of the things i want to talk about is the younger generation in general. they expect everything, as i said, to come to them. they expect the convenience and easy access and everything to be mobile. right now there is 10% of the u.s. population that already uses mobile devices. just to access their bank accounts. and then of that 10%, you have 54% that are accessing their checking and savings accounts. you go further, 36% of the credit cards and only 20% of those other investment accounts. so we know that this really, this environment is ripe. see, there's also the expected growth of 30% per year for the next three years.

so one of the things that we did at sink or swim is we're really at the forefront of the technology era for online trading. and right now tastytrade, we have been at the forefront of the -- the amount of content that gets consumed through video every year is enormous. and so we need to make sure that the content is relevant, useful and entertaining. but what is also important to make sure that the technology that is provided is actually pushing the content, to -- the content to the customer. or has the ability to also curating the country to make sure it's organized and easy to find. on top of that, making sure that that video of that data is all on demand.

they want it now. except. the younger demographdemograph ic expects that, expects that is all these access wherever they are. and also it is free and shareable. so thinking beyond just mobile access to your bank account, taking it one step further, something like simple. something like that which firms do today where you have access to your brokerage account on your trading account. you get your debit card. you can write checks. you have access to more options, which is really, really important. you need a flexible alternative than just a bank account alone. so it's time to think differently, and our approach is a different approach for the younger demographic. providing not only in interest

-- entrance through gaming and gaming but also content directly to your trading account. so it's time to think differently. and creating a culture within not only those steps, take that startup mentality, so we need a place that inside a larger organization. and really the best -- tom is going to pull me off stage. the one thing we need to just think about is taking that startup mentality, placing them within those larger organizations, you know, give them the chief innovators had and start to create, start to create a culture that breeds innovation in personal finance. thank you. [applause] >> thank you. hey, next up is nicole sherrod. nicole and i first met when we

acquired sink or swim and she was running trading at td ameritrade. she now runs the largest trader, active trader grip and trigger penetrated technology in the world. they do over $3 billion of transactional business every hour. one of the things i love to talk about is when you think about las vegas, they do about $2.3 billion of transactional business every year. that includes super bowls and everything else. and think about what comes to the pipes that nicole overseas, manages and runs from a trade perspective, it's 3 billion an hour, some close to $24 billion a day. just showing how huge that segment is. nicole. >> a lot of benjamin's. >> that's a lot of benjamin's. [applause] >> great. so like times that i actually used to work for him, and then when he went to start his new media company, he took office

mormars people at td ameritraded left me behind. so it's great to be here. i want to talk about some the things that our firm has been focused on from a problem-solving perspective recently. i've been spending a lot of time recently studying generational migration trends. riveting, right? so basically if you think about it, my roll is on responsible for the growth of the trading business at td ameritrade, which is very much a today problem to solve. but when i look ahead down the road i'm really concerned about what's going to happen with future generations. so if you look at this graph, what we're basically looking at is the consensus in 2010 would looking at the population of baby boomers. you can see that was close to 30%. as we look a few years down the road, 2020, that population is going to drop down below 20%,

and the millennials will be at 9% -- 19% of the population. pretty much anyone has been talking to the baby boomers and has been positioning their basis for the baby boomers. but a few years down the road we are going to be targeting a very different individual investor. so i've been spending a lot of time studying these individuals and their behaviors and attitudes. and a few things have emerged that has me really concerned. 11% believe that the stock market is the best way to prepare for retirement. that's not many. if you look at the generation, generation is the, 40% lead that a savings account is the best way to save for retirement. that is concerned because as we all know, the best way to build wealth over time is through the stock market. so we teamed up with two guys who were in, who are millennials themselves, a small company out of louisville, kentucky, and

they are great thought leaders at the intersection of social and finance. and kind of the genesis of the problem that we gave them was, how do we get in front of these young kids and teach them to think carefully about the stock market? how do we get them less concerned about the risk of the stock market and get them to cultivate a genuine interest? what you're looking at here on the screen is a graphic that we found on "huffington post" which is kind of the genesis for their idea. you can see that 10 publicly traded companies in the middle of the screen are the top 10 companies in this diversified food sector. most people know that nestlé crunch exactly nestlé but they might not know the other brands that are with nestlé. but young people today have an amazing sense of brand's and labels. they are genuinely interested in

brands and know a lot about them. so we thought what if we could get young people today to think about the product they interact with? not just from the perspective of i brush my teeth with crest, i get a pumpkin spice latte at the beginning of the day. what is a good look at things in terms of just having a different lens? the products that they interact with, the products defensive talking about on a regular basis are publicly traded companies. if they invested in those companies, potential ebay could make some money. and that was the genesis of the idea behind like the photo. it's a new site. like photo.com and basically what it does is it comes to all of your social interaction. it looks at all of the status updates, all of your tweets. it's not just the companies but

it's the product level as well. so we do say i'm enjoying a pumpkin spice latte, it's going to note that the publicly traded company you're talking about is starbucks. it even those that the blooming onion rolls up to outback steakhouse but it's an amazing database. and do you can see landon swan, one of the investors, is likefolio is up $1000 over the course of the past year and just a $5000 investment in the company's that he talks about the most. how it plays out, here you can see a 12 month price performance chart of yelp. as you hover over the different levels it will show what your friends have to say about that particular stock. so here my hair salon mentioned if you go on to yelp and to check in and do a review they will give you 15% off of your head cut. so that got me thinking, while mac, they really want people to get on yelp. my friend jason miller says

wanted to yelp you guys to spread the good would. acid as i thought that, i thought this is a for. this company is now a verb. that's a product developers dream. you can see the 12 month price to plummet of the stock. it's now worth $2600. we could do the same thing over netflix, but it's a giveaway for young people to think about the stock market. the on one of the things i wantd to just mention really quickly in the interest of time, another think we are building is a new site called td ameritrade university. basically what we're doing with that is taking our active trader paper trading software and we're putting it in colleges and universities completely free of charge to allow young people are learning about the stock market the ability to trade and see how one another are performing. so it's basically a virtual environment for them to kick the tires and see how they would do

in a trading environment. what you can see it is a professor, dr. smith, he is teaching four classes and he's running competitions in each class. one of them is on futures, one of this is on options trading and he can see exactly how the students are taking the insight and the concept of their learning in class and putting them into practice in living, breathing markets. and i'll show you a view of the student experience. so angela livingstone is trading on the sink or swim platform and she can see, not only how her trader performing but also how her friends performance is as well. so let's say here you can see angela is in a class rank is seven in the paper trading competition versus matt mcguire who is in first place. she can click on his name is exactly what he's doing to outperform her. so there's a learning element along with that.

and so i think both what is the and i have both been talking about are the challenges that we are facing relevant to our young people are thinking about the market and innovate solutions that can really help them think about things to fully. >> good stuff. [applause] >> so now i've got a couple of minutes where i get to throw some not some softball questions at these guys because i told him, i lied to them. i told them that i was going to throw them all softballs and then i decided, i decide that's no fun, right? >> awesome. spent i expected nothing else. >> so the average investor, just to give you guys some context, the average investor is about a 50 year old white men. that's it. the way we break down the entire industry, talking potentially fiftyish year old white guy and that's the whole business. to change that you've got to do

something, you have to do something kind of incredible. you almost have to burn the forest down to restart it. so what both of these women are doing is building companies and parts of a larger company to address that. here's the issue. a 21 year old may understand that they've got a starbucks latte from somewhere but that doesn't necessarily help them improve upon the law of just big numbers or big averages where you're ultimately going to be finished this on mediocre result is going to be translated by the sec are some of the. how do we change an entire generation of 20-year-olds, 30-year-olds this old thing which is the next thing you are 50. so how do you get map-21 euros you're talking about, forget about -- how do you get map-21 year-old to actually learn how to apply this? make it functional or

applicable? >> i think going back to the concept of likefolio, it was creative spark the interest or the notion he can potentially make money on the stock market. it's not enough. they have to then learn about fundamental. have to learn about risk management, and more and more companies like td ameritrade are taking all of the education inside that they need to know and delivering it completely free of charge. >> last question, is that like the casino, teaching you how to play blackjack? >> i don't think so because in terms of the sustainability of my business, i'm only going to continue to have a job if people are continuing to perform well in the market. education is a key component of that. the more successful our clients are going to be, the more successful our business is going to be. >> that school. kristi, here's the next question. when tiki first -- about, the amount of option and derivative businesses that td ameritrade at

the time was about nine, 9.5% overall quality. didn't you guys have taken over and build up the technology, it's not like in the mid '40s, something like that which is an incredible growth in the derivatives space which means a different, there's a different climate. kristi, how do we now move this huge growth in the derivatives space and the technology and everything else down to this younger generation? how do we make it so it's investable for them? how do we make the story compelling? >> absolute. this goes back to what i was saying before. making sure your providing the tools for the younger generation. think about how they live now. they are gaining on their mobile devices. they are consuming content. continuously. whether it's a video or written. they like to follow and interact socially. so that's one of the things that we've actually done with dough

is provided all of those avenues for the younger generation to come through and to learn about trading and follow other traders and watch what they are doing. so kind of similar to what you guys are doing in the university, but we are doing it with live trades every day. we are doing it with providing a number of different types of people that you can attach to. because i truly believe that one of the best ways to learn is that hands-on learning. is really learning by doing. or watching somebody actually do. so with dough we provide again content. you can basically stand over a professional trader's shoulders and understand how they're maneuvering the market. and actually watch those individuals making the trades and understanding more about why, rather than just getting

some screen or some subscription to somebody's newsletter. it's a deeper. >> nickel, used to say the complexity of certain product types didn't fit the technology or the technology didn't fit the complexity, so that the younger generation was at a disadvantage. but the truth is as ago out to all the institutions and address all these college kids and recent graduates, it's exactly the opposite. >> yeah, i think that's the case. like i was mentioning before, they have an amazing perception for brands and products. and a lot of the products that young kids are interested in today really and, the companies into court perform well from an equity appreciation perspective. they've got all of his knowledge and also a lot of spending power as well. it goes back to the '80s when peter lynch wrote one up on wall street, all about investing in what you know. and about some of the brands that we all know, the products

that we all use, netflix. that stock has performed unbelievably well over the course of the past year. we just looked at yelp. if you're looking at your world and young people are working other world to a different lens where it's not just this is a product i use, it's also there's a company that makes this product and they might be performing well in the market. it's just all about thinking differently. >> thank you, exactly. so kristi, taking it to the next progression, how do we engage? like, so, it's cool that, go out, in the big picture, your one small company and you're not a small company, and how ultimately to change a culture which is just like what somebody said earlier, most of want to open a bank account? how to change the culture? i was doing a discussion today's ago and they said why would anybody want to open a brokerage account? >> so a couple of things. first of all, a bank account

versus a brokerage account is, i don't know why anybody wouldn't open a brokerage account today because i think brokerage companies have come a long way in all the different capabilities you can do with a brokerage account. not just trading stocks, options, futures and funds, but you can have your debit card. you can have a check and have it all in one place which i think is fantastic. but one of the things i'll say is, talking about engagement is taking that brokerage platform and putting on top something like dough where you have the engagement, the constant engagement. one of the things i want to go back to this at sink or swim we march with the company which was a financial education company. and we saw that when someone had that education core, they had confidence, obviously, to trade

more and try different things in the market. we saw they traded two to four times more after they took that class. the only thing is after a while they dropped off because the engagement was missing. so i think taking that content and providing continuous financial content commentary, entertainment, something useful, something relevant is really, really critical. the other thing i'll say, too, is providing that sort of content in the same place whether actual placing their trade is also really important. on top of that, adding the people that you can follow and learn and in counseling that in one place is ideal. it's almost expected these days instead of having light or six different apps. >> nickel, quick question. financial literacy. -- nicole.

the idea that a new generation grows up with financial literacy as one of the backbones, which it never has been, it changes the way you do almost everything. even if you don't invest actively or even if you don't go to work in the financial space, it changes the way you look at almost every mathematical model in the world, like it or not, more technologically driven towards that. so won't change kind of the entire kind of growth industries? >> everything. i think it absolutely will. i mean, i think, you know, look at all the young people who are here today and they are looking to like share ideas and learn about what other companies are doing that's new and innovative and different. well, to me, that's what stock research is all about. it's looking at innovative companies and what they're doing

differently. you know, as they are problem solving how that's going to play out in terms of the performance of their company. actually what the stock market is all about. if we could get young people focused more on that like developing that passion for the story behind the company that's out there making money, not only is it going to change the ideas that they're going to focus on bringing to market, but they will be in a better position when it comes time to retire. >> hey, kristi, how hard is it -- building financial technology, how hard is it to address things that are never been addressed before with technology? i guess i can ask nickel the same question. like building scalable financial technology that's never been done before. is it risky or is it just difficult or is it risky? >> i'll start. it's both. it is difficult, and it's risky. you're not really sure if it is

going to ultimately provide that, or fulfill that need that people have out there. however, if you say, as long as you say i never that demographic is that i'm going after and really understanding how they function and how they live, how they get their information, or how they naturally expect to use it, and then raise the bar and build it there. it's not always easy, but you have to constantly be ready to change. i think that's one of the most important things. >> i'm going to change the question of little bit for nicole. in the industry, as we teach people to become -- as you teach people to be, more financially literate, okay, how do we apply

that? with respect to owning your own -- owning their own results? because the problem that i've always had with the financial space is that everybody would prefer to blame an asset gather as opposed to taking the onus on himself but as you start to build core technology and as you start to deliver a message, younger, doesn't that transition the obligation to the user? >> yeah, i mean, i think so. we call our space the self-directed space. it's all about individuals taking action on their own account, and that's why we spent so much time over the course of the past few years, and one of the many reasons that we acquired sink or swim is because they have an amazing infrastructure built into the technology to help an individual investor know exactly what they were getting into the point when they're pulling the trigger. they knew exactly where they

stood and he knew exactly what they stood again. i look at my job as a technology innovator, as one where i have a responsibility to keep raising the bar and doing more and more to help give people the tools that help them better understand what decisions they're making, and to help them make more informed decisions. so that's -- it's a responsibility. >> is the future of financial technology content or functionality? >> so, i actually believe it is a combination of both. you can't have something that stands alone. you need to provide so much more than just one or the other. content, you know, we are in the content era right now. content is king right now. but that technology has got to be amazing to go along with that. so it's both.

>> what i would say is within our sink or swim platform which is ranked the number one trading platform, we've done so much more over the past year in particular to integrate more content into the system. because it helps to better inform the end-user. in fact, within our platform, our clients can actually watch tom's show tastytrade what he is talking to them all day long about risk management and trading. so the content is packed and delivered through the trading platform spent so you guys are never listen to the show, right? i've never talked about risk management. [laughter] i've never mentioned risk management once. anyway, this is great. i thank you so much, and thank you, guys so much. one more speaker. thanks. [applause]

>> i'll grab his bio because with a late change this morning but it's yaron brook and he is coming out right now. from the ayn rand institute, executive director. i.t. so much. [applause] spent i have no idea what i'm doing. i got an e-mail last night saying, hey, somebody canceled on this session about money. do you want to fill in? and you offer me a stage in an audience and i'm always going to say yes. so that was easy, but then i had to figure out, okay, what am i going to say about money? it turns out the session is not even about money, right? it was about investing, about making tools, about technology

but there's almost nothing about money. which is what this is supposed to be about. i have the feeling that most of you didn't come here to talk about money. you came in to talk about investing, startup companies. i would like to listen to that stuff but i want to talk about money because that's what they asked me to talk about. and really kind of take a step back from all this because, and i was trying to think, i was sitting there trying to think how many can connect with all these wonderful presentations? i have no clue. i started thinking about it and there's a connection. we have a certain attitude in the culture we live in towards money. just have a certain attitude in the cold we have in about money and this is particularly true about younger people. is not a positive attitude. we all want money, we all need money, we all use money but deep down, there's something a little

uncomfortable about money. it's like self-interested and self serving, the pursuit of money. and that's reflected in the financial world we live in. right? why is making such an entangled mess? i love that ball because that's an expression of all the regulation and controls with place on the banking industry over the last 100 years. exactly 100 years either way when the federal reserve was established in the beginning of the tangled mess in 1913. we've got to untangle the financial industry because we don't trust the financial industry. we don't trust banking. this goes back hundreds of years. we don't trust money but we don't trust people who pursue money. we try to rake him to death and we create controls and a mess and you need a startup to come in because no existing bank and even approach tragedy what these guys are doing because it's such

a disaster out there. the artillery surviving and they have the regulars breathing down the neck on a daily basis. -- they are barely surviving but if you think why our kids, what is it about derivatives that is hard for kids to even connect with? for the last five years all we have heard in the news media is how derivatives almost destroyed this country, right? we want to bring complete financial collapse because of what? everybody any media that you ask will say, those evil derivatives markets. so people have already got a shield against that. we live in an economy that's growing what, 1% a year? the stockmarket needs a lot more than 1% a year to really do well over the long term. it's hard to gain confidence in all this. so what is it? we live in this environment

which is i think very hard for young people to get engaged in these financial kind of thinking and financial decisions. we live in an environment where very few people understand what money is. i want to talk to you about what money is. because the federal reserve is painting $85 billion a month. what is that? is that money? how does that affect us? what's involved? so what is that stuff, this paper that we carry around, is this money? what does it represent? why do we use the? where does it come from? so what is money? is this stuff? purchasing power. so this allows me to buy stuff. why is it cool? where did this come from? who invented this? it wasn't the federal reserve it as i said it was only invented in 1913. federal research predicts money a little bit -- what do we do

when there was no money? you wanted to get stuff. you bought it. i exchange my cows for your chickens. not very efficient, not productive, not a good way of doing stuff. so we come up with something. something that facilitates trading between chickens and cows. for example, if the chickens are only worth half a cow, have a cow is not worth have a cow, right, once the cat was dead. not very useful. bartering is a cumbersome, inefficient terrible system. so we come up with this medium of exchange. we come up with something called money to facilitate these transactions. it makes it possible for us to change cows and chickens and other stuff easily, efficiently, smoothly. we get lots of things in the past for money. tobacco was used in money in colonial america.

special rocks, cool kind of looking rocks have been used money. obviously, was the obvious one that in the last few hundred years have been used for money? goal. gold and silver have been used for money, precious metals. what don't you want money to be? you don't want money to be too plentiful, right? you don't want money to be to teach great. you get a lot of money coming, the same number of goods, what happens to the price of goods? more money chasing the same number of goods, what happens? teaching economics 101. the price goes up, right? because everyone's the same goods. by cisco up. right now that it is printing $85 billion a day so we have more money. the economy is not growing by 85 billion a month. so what happens to that money? i see they have a trick up their sleeves the it doesn't actually go to purchase more goods.

where is it going? where's the 85 billion actually going? some is going into the stockmarket, which is partially why using the stock market go up. and part of it is going into we're? into bank reserves. thanks for putting it into a saving account and the fed is thinking interest on that significant to the fact is printing money on one hand and paying people to keep in the reserves on the other. the money is not entering the u.s. economy which is one of the reasons prices are not going up despite the fact we have the same number of goods with more money chasing it. current event. so money, you want it to be something precious, something that's hard to come by, something that grows only so much. and you don't want it to be plentiful. you want it to have some value that people have some ancient valley, that people value it beyond just money.

so don't get stuck with gold. i could make something nice out of the. it's not just a waste, not something i throw away. so that's how money kind of evolved. and if you think about why, the guy who's supposed to talk instead of me, i guess is going to talk about bitcoin or get something to what is bitcoin interest in? notice that they created certain characteristics of bitcoin that make it look like kind of a precious metal. limited supply, only so much is released at the time. you cannot release more than that. it's only going to be a certain your they stop producing it. they will only be a finite amount of this stuff. and people are willing to accept it for transaction. why are you willing to accept bitcoin as transactions? why would you accept this that's basically a string of encoded zeros and ones? what's that?

[inaudible] you can exchange but why would people accept that? someone is willing to accept it because they believe someone else is going to accept it. but why does this get started? that's an interesting question. i don't necessarily have the answer. i suspect, this is my suspicion, that one, you can buy illegal goods with it because it's not traceable. it's true, i don't know if you saw the black market that was shut down two weeks ago on line, the guy was caught in san francisco basically buying and selling drugs. illegal drugs, heroin, cocaine type of stuff. you could use the going to do that, untraceable. you can't trace was buying or selling. it took them two years just to find the guy in the marketplace who owns it because the encryption is so difficult to trace. it allows you to buy illegal stuff. what else? in an era where we are kind of losing faith in the dollar and in an era where we are kind of

losing faith in money, in traditional money, it's an alternative. and it's an alternative being used by merely by people who are somewhat on the fringes, who are suspicious of the dollar, who are suspicious of -- probably the same people buying gold right now, i probably trading in bitcoins. it's on the fringes. it allows transaction to happen in visible to the authorities in an era when the nsa is listening to everything we say, right? you can use the bitcoins to avoid all of that. so it's a bit of the phenomena of paranoia, of a paranoid about the state of the world, about the state of privacy, about our ability to be anonymous online. that's what bitcoin really provides. that's the characteristic, the added characteristic is money. it gives anonymity. is theoretically give you anonymity, too, right? i could give you a dollar.

nobody can trace the dollar back to me. this is anonymous. but once you go online it's hard. want to go online they can trace everything. the bitcoin resurrects anonymity that paper money has. some money is a meeting of exchange but it's the way we treat. how do we get money? we get money by creating stuff. we get money by building stuff. we get money by being productive. by being innovative. by going to work and working hard, and the more reductive we are, in an economy -- productive we are, worksite, the more productive you are, the more money you get. so money is a reflection of our own productivity. is a reflection of her own creativity but it's a reflection of the work that we do. it's a reflection of our success. money is never -- it shouldn't

be -- this is important for young people. money is not an end in itself. what do these -- they could, they could three generations, for generations to try to spend this money and they won't be successful they've made so much. why do they keep working? why do they keep making money? it's not just about working. they keep measuring it because money measures our success. it measures the amount of value we create because how do you get money? by offering somebody a good and then pay you. why do they pay you? because it's valuable to them. they are not forced to be. money is this beautiful mechanism by which we transact value to value. bill gates becomes a gazillionaire by what? by selling a product that we hate? do we despise, that is destroying our lives?

no. he sells is a product that we value. that makes our lives better. we pay 100 bucks for microsoft. i know we hate it as well if they love hate relationship. we couldn't survive without it. ..

the value that they have, you know, the service that they make your life better. this history. treaties, who loses in a trade quiet who loses in a trade? i bite not mobile for $20,000, how much is it worth to me? more than $20,000, otherwise they wouldn't have bothered to give in the $20,000. how much is it to the seller? less than $20,000 otherwise you would herded with it. i.e. by 11 once in a while. he generally enter into a trade. it's a win-win transaction. money is a facilitator of win-win transactions and do not ask him the money is of the great we have in our culture. said we should celebrate money. we should change people's attitudes towards money.

if we do, they'll start using wonderful financial tools we have for them. thank you. [applause] >> you know, i was listening and thinking word we get money? mike says it always comes out of the cash machine. there is your money. i'd like to end -- i. we feel it's important to have a take away. eucom, usn. you need to take something away. i want to base this little closing off of a "new york times" editorial a couple weeks ago from thomas friedman who said, complexities read, but i wanted to test it for myself because this is the generational change and this is the take away from today's kind of discussion is we are attacking topics, issues.

we are attacking project. content that 10 years ago was ridiculously complex and too complex for the do-it-yourselfer for the consumer. what we see right now is this huge move towards complexity is free. they should've won the nobel prize. it's because it is so investable at this moment. i'll give you an example. lives on the air for the last couple of weeks, we suggested to 40,000 or so listeners, hey, filed for a financial problem. we offered nothing. it's all good will. so for financial baths offer something. go build some miles and figure out exactly what the risk is imagining winners, losers and many of diversifying capital. solver something that n